Average new car price has risen 38% in past decade, says Cap HPI – Car Dealer Magazine
THE AVERAGE price of a new car has increased 38% over the past decade, according to Cap HPI.
Analysis by the car data company shows that the average amount customers pay for a new car has fallen from £ 24,383 in February 2008 to £ 33,559 in February 2018.
Over the past 10 years, there has been a huge leap forward in the technology that powers cars, with features like satellite navigation, automatic parking, autonomous emergency braking and adaptive cruise control. now commonplace among the latest models.
However, Cap HPI argues in its analysis of the data that while advances in automotive technology are undeniable, manufacturers are incorporating many of these features into these cars as standard in order to make their products more competitive, so it is not. probably not the reason for the increase. in cost.
Moreover, the data shows that there are more premium brand cars in all segments and these brands are experimenting by creating new segments. The overall expansion of diesel engines has also been a factor, as these units cost on average £ 1,000 more than their petrol counterparts.
Matthew Freeman, management consultant at Cap HPI, said: “The real driver of this evolution is the changing structure of the market. Over the past decade, we’ve seen more expensive models rolled out. We see more SUVs on our roads and they are generally more expensive than the equivalent sedan.
“Many brands have decided to offer a more luxurious mix of specs and have eliminated their entry level specs. This is partly a response to PCP making cars more affordable and consumers switching to more expensive models. It should also be noted that these base models were not particularly desirable in the second-hand market and had low resale values.
PCP has also shifted the focus from the entry price to the monthly reimbursement, and having a model to advertise as ‘from £ 9,995’ is no longer a priority – cars are more likely to be advertised on their monthly payment. “
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